SLUMP IN MEAT.

Auckland Star, Volume LII, Issue 281, 25 November 1921, Page 5

SLUMP IN MEAT.

A SENSATIONAL COLLAPSE, OUTLOOK VERY GLOOMY. (By Telegraph.—Press Association.) CHRISTCHURCH. this day. A sensational slump in the price of meat is feared at the opening of the freezing season, which ordinarily commences in Christeliurch about the beginning of January. Opening North Island quotations (since withdrawn) were less than half the prices obtained at the opening of the season last year. The position is full of anxiety for producers. A fortnight ago in the ,Noftli Island nominal quotations were: Lambs under 361b, sd; 371b to 421b, 4Jd: overs, 4d. Wethers under 561b, 3d; 561b to 641b, 2Jd: 641b to 721b, 2d; overs, ljd- Ewes. 561b, 2d; 561b to 641b, lid; 641b to 7-2lb, Id. These were nominal over all prices quoted by exporters in the North when works were supposed to open in Hawke's Bay, but it is not known whether sales took place. On the market ruling at that time in London and since these prices were too high, and they have been reduced by one forhting to three farthings over various ■grades. The trend of the market will be anxiously watched. Latest letters from England recorded a drop in London of 4d per lb over six weeks.

A C'hristchurch meat man stated today that there was any amount of Canterbury lamb ex ship or ex store selling in London at 7*d to 8d per lb, ■but whereas previously it had cost from Id' to Hd to get the stuff Home, now it cost 4d. The causes of the slump were numerous, but principally the question of supply and demand. It was not to be expected that any one commodity would not be affected by the general fall, and the reason why meat held up co long was that it could not get on the market owing to congestion of shipping at Home. Boats got Home late, and were held up by slow discharge. This had kept the market steady during the summer, but it was realised that when the slump came it would be severe. Xow the London market was absolutely loaded with meat, and people' were suffering like everybody else from reduced spending power.

The year before the war freezing companies opened up in the middle of December, and in recent years in January. So far this year there nave been no inquiries to warrant earlier opening than usual. There are two factors to be considered in the present crisis. From the producers' point of view it would be wise not to send stock in too early, to give the Home market a chance to clear stocks, but against that delay would bring about a heavy weight of stock which is not required at Home, j HOPE FOR BEFKOVEMENrr. The position revealed has been developing for some time, sta-ted Major Makgill, chairman of directors of the Auckland Farmers' Freezing Company, when, interviewed on the matter tihis morning. H« explained that the price of meat was dov.*n now, ibut it was incorrect to say that a seisalticmal stump was feared. There -was no cause for undue alarm. The ■world's sheep had reduced enormously since 1914, the decline in the United Kingdom running into several millions. These facts, concluded Major MaJcgill, should give tihis Dominion hope for improvement.